Tuesday, June 20, 2023

A Crypto-friendly Face Takes Over...

Trade of the Day Wake-Up Watchlist

Good morning Wake-up Watchlisters! While you're sinking your teeth into a slightly stale piece of cold pizza you'll see stock futures fell on Tuesday. Investors are cautious as concerns about China's economy continued with Beijing cutting lending benchmarks to revive demand. Plus, traders are waiting for Federal Reserve Chair Jerome Powell's two-day testimony on Wednesday and whether policymakers will resume raising interest rates in July.

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Here's a look at the top-moving stocks this morning.

Alibaba Group (NYSE: BABA)

Alibaba is down 2.44% premarket after the company announced that chairman and CEO Daniel Zhang would step down from his dual role to concentrate on the development of the group's cloud division. The cloud unit, which is Asia's largest, is considered the most valuable among Alibaba's six divisions. Earlier this year, Alibaba revealed its intention to separate each division into individual companies, potentially pursuing separate initial public offerings (IPOs) when they are prepared. Zhang, who has been leading Alibaba since 2015, will be succeeded by Eddie Yongming Wu, the chairman of Taobao and Tmall Group. Crypto-friendly Joseph Tsai, a longstanding ally of co-founder Jack Ma, will assume the role of chairman. The transitions are scheduled to take place on September 10.

 

SoFi Technologies (Nasdaq: SOFI)

SoFi Technologies is down 4.77% premarket after several analyst downgrades. There were three in total, including Piper Sandler analyst Kevin Barker, who downgraded the stock from Overweight to Neutral. The overall claim from the three analysts is the stock has gone up very fast compared to the S&P 500, as it's up 80% year to date. Due to its fast rise, they downgraded the stock but still raised their price targets, meaning they're maintaining their long-term bullish outlook.

 

Sector to watch: Artificial Intelligence

Several tech stocks have been hot during the first half of 2023, and here are a few worth keeping an eye on.

Nvidia (Nasdaq: NVDA)

Semiconductor group Nvidia hit a new record on Friday, surging 10% for the week. And while it has some competitors like Advanced Micro Devices breathing down its neck, NVDA has five of the world's largest and fastest supercomputers relying on its A100 processing unit for AI computing. It also owns ChatGPT, which is built and owned by the company itself. Overall, these important contracts give Nvidia a leg up on the competition and could lead to further gains down the road.

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Microsoft (Nasdaq: MSFT)

While Nvidia brings the hardware, Microsoft has the software. Azure, Microsoft's cloud computing platform device, is shaping up to be the leader in the cloud-based AI space. Microsoft earned this seat by partnering with many promising AI experts over the years, and the AI boom you see today has been years in the making. While the stock is down slightly in premarket trading today, it's up 43% year to date and is setting all-time highs once again. This is a stock worth keeping an eye on this year.

 

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Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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